Is Gratuity Applicable for a Retiring Director in a Small Pvt Ltd Company? How to Calculate It?

Hi all,

Our company is a Private Limited company employing less than 10 people. One Director is retiring after 21 years of service. Is gratuity applicable to him? If so, how should it be calculated?

Reply,
Arun

Dear Arun,

As per your brief, the Act itself is not applicable to your company. For further details, you may go through section 1 of the Payment of Gratuity Act, 1972.

With Regards,
R.N.Khola

Hi all, Ours is a Pvt Ltd company employing less than 10 persons. One Director after 21 years is retiring. Is Gratuity applicable to him? If so, how to calculate? reply Arun

I also want to know which acts are applicable to a private limited company, particularly an automobile dealership employing 150 employees.

I understand that the amended gratuity bill would be effective immediately, while central government employees have been paid gratuity wef 01/01/2006. Why is there this disparity?

- R. Narora

We are a private limited company with 4 employees registered under the Shops and Establishments Act in Mumbai. I wanted to know whether my staff is eligible for gratuity if they have completed 27 years of service.

Hi, we are a private limited company with 4 employees registered under the Shops and Establishment Act in Mumbai. I wanted to know whether my staff is eligible for gratuity if they have completed 27 years of service.

Hi Deepa, thanks for the information. I would like to know if there is any component to be given to the employees when they leave after 27 years. We have been giving them a net salary without any deductions. So, what are the bases on which compensation is calculated under the Bombay Shops & Establishment Act?

Regards.